Text donations ‘to be VAT free’

Whether it is an old Motorola or a Sony Ericsson C905, the money a used mobile can generate is often greatly appreciated by charities – and they may now receive a higher percentage of any text donations.

It has emerged that SMS contributions made to these organisations will no longer be subjected to the VAT charge they have in the past.

According to the Charities Aid Foundation (CAF), an agreement worth celebrating has been made by a number of operators to ensure the changes go ahead.

It estimated that typically, around 95 pence of each £1.50 donated to a cause makes it to the intended party, but this figure will now be closer to £1.10.

Hannah Terrey, head of policy and public affairs for CAF, said: “The most important thing for donors is to know that as much as possible of their donation goes to help the cause they want to support.”